Growth and Exit Report: Assessing Potential Sources of Funds and Designing a Business Plan for Bayleaf Takeaway

GROWTH AND EXIT
REPORT

Table of Contents
INTRODUCTION.......................................................................................................................................3
TASK 2.......................................................................................................................................................3
P3 Assess potential sources of funds available to business organisation with benefits and drawbacks of
each source..............................................................................................................................................3
Critically evaluates potential sources of funding and justifies the adopted source for Bayleaf Takeaway
.................................................................................................................................................................7
TASK 3.......................................................................................................................................................7
P4 Design business plan for growth including financial information and strategic objectives.................7
TASK 4.....................................................................................................................................................12
P5 Assess exit or succession options for small business with benefits and drawbacks..........................12
CONCLUSION.........................................................................................................................................14
REFERENCES..........................................................................................................................................15

INTRODUCTION
Planning for growth is a strategic plan that is adopted by every business organisation so
that they will sustain for a longer period of time. In this basic two strategy are involves that are
growth and exit strategy so that business can choose the one as per their profits. This report is
based on the small SME that is Bayleaf Takeaway who wants to focus on growing their business
and for this they can analyse the various sources of funding so that best source for arranging
funds can be chosen. Further it develops the business plan that can include the strategic
objectives and financial information so that extra expenses can be removed in planning for the
growth. At last it elucidates the exit or succession option for a small business so that best one can
be adopted and firm will gain success. All these terms can be discussed within in project(Pisoni
and Onetti, 2018).
TASK 2
P3 Assess potential sources of funds available to business organisation with benefits and
drawbacks of each source
Sources of funding defines as an act of offering the resources related to finance for need,
projector program so that success can be captured by the business enterprise without facing the
shortage of funds. In context of Bayleaf Takeaway there are several sources of funds that can be
includes so that manager can adopts the best one. It is based on basically two types that are
internal sources of funds or external sources of funds that can be shown below:
Internal sources of funds – It refers to that source of funds in which company can collect the
monetary resources within the firm itself for generating the higher growth and development. It
includes the several sources that are retained earning, owner’s capital, equity share, bank loan,
hire purchase etc(Cotei and Farhat, 2018) .
External sources of funds – This term defines as those in which organisation can arrange the
funds from outside the business organisation for growing the business and gaining the
competitive advantage within marketplace. it includes the several types that are business angles,
bank loan, hire purchase , trade credit etc.

In case of Bayleaf Takeaway several sources of funds can be numerated below:
 Retained earnings- It is one of type of internal source of funds for an organisation. It
simply means those profits i.e. left after paying all the dividends to the company
shareholders and expenses to the owner capital. It involves some advantage and
disadvantage in case of Bayleaf Takeaway that can be shown below:
o Advantage – The main advantage of this source of funds is that it is available
easily because of this enterprise cannot seek for help from the shareholders in
urgency of the funds. It also helps in reducing the cost of issuing the external
equity.
o Disadvantage- The major disadvantage of retained earning is that the amount
raised from this type of source is limited and also tends to highly variable. In this
firm opportunity cost is high because it will reflect the amount of earning which is
foregone by equity shareholders. This shows the outcomes of over capitalization.
 Bank loan – It refers to the amount of money that a company can borrowed from the
bank for a certain period of time by agreed upon the repayment with interest. In this
company can pay the interest on the amount borrowed not on the share in the business. In
this interest rate is to be fixed(Coad and Kato, 2020). In case of Bayleaf Takeaway
adopting this source includes the benefits and drawbacks can be show below:
o Advantage - The main advantage of this source of fund for the business is that
the bank charged the fixed rate of interest on the amount borrowed that also
deicide at the time of taking loan. This is very useful for the company as taking
this loan not pressurize the business owners due to this they can effectively focus
on their business growth. Another benefit is that it is much secured loan due to
this enterprise cannot face any issue related to payment and any other factor.
o Disadvantage – The prominent drawback of this source of finance is that it is not
flexible in nature as in this businesses can pay the high interest they cannot use
that interest for their personal use. In this bank grant the loan against some type of
securities and if the business venture is to fail in repaying the amount then the
bank will seize their security and assets.